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This module reading explores the implications of different business models on organization design. After discussing the distinction between units focused on work processes and those devoted to markets, the analysis provides insight as to when to organize businesses by function, geography, products, customers, or expert knowledge. The analysis highlights the difference between operating core units designed for efficiency and market-facing units designed for responsiveness. Span of control and span of accountability are introduced as key concepts to direct organizational attention and ensure the effective execution of strategy. While this module is designed to be used alone, it is part of the Strategy Execution series. Taken together, the series forms a complete course that teaches the latest techniques for using performance measurement and control systems to implement strategy. Modules 1 - 4 set out the foundations for strategy implementation. Modules 5 - 10 teach quantitative tools for performance measurement and control. Modules 11 - 15 illustrate the use of these techniques by managers to achieve profit goals and strategies.

Google’s founders wrote “10 Things We Know to Be True,” a document detailing founding principles and values, early in the company’s life. As the company expanded, added business units, and changed its name to Alphabet, were these principles and values still valid and relevant? If not, how should they be changed?

This case provides four examples of organizations with very different business strategies: Walmart, Starbucks, Harvard Business School, and Google. To support their varying strategies, each of these organizations requires a specific configuration to provide the most value to their primary customer. Configurations examined include the Low Price, Local Value Creation, Global Standard of Excellence, Dedicated Service Relationship and the Expert Knowledge designs. Students are asked to analyze the configurations used in each of these examples and then to apply the analyses to a company with which they are familiar.